Healthcare accounts are a tax-preferred vehicle used to pay for qualified medical expenses. They help consumers pay for qualified healthcare expenses with pre-tax dollars, effectively decreasing taxable income and increasing healthcare purchasing power.

Flexible spending accounts (FSAs) are “use it or lose it” healthcare accounts that are funded by employees through payroll deductions, and they are usually the first step in CDHP adoption.

Health reimbursement arrangements (HRAs) are “use it or keep it” notional healthcare accounts that are funded by an employer and have no actual cash value. They reimburse a consumer for eligible medical expenses and help consumers build value in their health plans.

Health savings accounts (HSAs) are owned by their account holders and are truly a “use it or keep it” healthcare account that is structured to provide consumers with the opportunity to build equity in their health plan.